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company, you find the following:

a$.$ Cash balance on June $1$ is $$936.$

b$.$ Actual sales for April and May are as follows:

c$.$ Credit sales are collected over a $3-$month period: $30\%$ in the month of sale, $40\%$ in the second month, and $20\%$ in the

third month. The sales collected in the third month are subject to a $2\%$ late fee, which is paid by those customers in

addition to what they owe. The remaining sales are uncollectible.

d$.$ Inventory purchases average $68\%$ of a month's total sales. Of those purchases, $20\%$ are paid for in the month of

purchase. The remaining $80\%$ are paid for in the following month.

e$.$ Salaries and wages total $$11,750$ per month, including a $$4,500$ salary paid to the owner.

f$.$ Rent is $$4,100$ per month.

g$.$ Taxes to be paid in June are $$6,780.$

The owner also tells you that he expects cash sales of $$18,600$ and credit sales of $$58,000$ for June. No minimum cash

balance is required. The owner of the company doesn't have access to short$-$term loans.

Required:

Prepare a cash budget for June. Include supporting schedules for cash collections and cash payments. Round

calculations and final answers to the nearest dollar. Be sure to enter percentages as whole numbers.

Cash Budget

For June

Beginning cash balance

s

Collections:

Cash sales

Credit sales:

Current month

$

$x$

$\%$

May credit sales

$

$x$

$\%$

April credit sales

Total cash available

Less disbursements:

Inventory purchases:

Current month

$

$x$

$\%$

Prior month

$

$x$

$\%$

Salaries and wages

Rent

Taxes

Total cash needs

Excess of cash available over needs

$

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